Adapting rewards and incentives to the new workplace
In case you haven’t noticed, the labor force, along with the business environment, are in a state of flux. A growing number of employees are rethinking where and how they want to work, leaving organizations scrambling to adjust. But with disruption comes opportunity, a chance to size up your total rewards and employee experience and adjust where necessary. If you haven’t already, you must rethink your approach to employee recruitment and retention.
Here’s what you need to know about adapting rewards and incentives to the new workplace.
About Total Rewards
Let’s first define terms. Total rewards are all the compensation, bonuses, benefits, and workplace opportunities an employer offers in return for their membership, commitment, and output.
Why are Total Rewards Important?
The benefits of establishing a good total rewards program are manifold. Let’s look at some:
- The ability to lure top talent. Hopefully this doesn’t come as a surprise, but a fat paycheck is no longer a shoo-in in terms of nabbing talent you desire. In fact, a recent study found that some 40% of employees said they’d accept a position for less pay for improved benefits such as flexible scheduling or the ability to telecommute.
- The ability to retain employees. Want another recent survey? How about one that found that 78% of employees reported that they’d stick with their employer because of the benefits it provided.
- Improved engagement. If you craft a total rewards strategy that offers something for everyone, you’ll get a workforce that will go the extra mile for you. Be sure to communicate to your employees how their performance affects the company’s bottom line and see if you don’t get better engagement.
Tips for Establishing a Total Rewards Strategy
- Survey your employees. Find out what your employees care about, then put together a total rewards program that caters to their needs. What you learn may surprise you. Compensation consultants can help here. We suggest the firm Mercer.
- Be realistic about non-monetary benefits. You want to be transparent about the real-life costs of benefits such as PTO days. Why? Because employees know when you’re overdoing it value-wise if they don’t feel favorably impacted.
- Communicate properly. After you’ve put together each staffer’s total rewards package, share it and explain it to them. Such transparency will also engender workplace good will.
- Segment your rewards. If you put your rewards into categories (benefits, compensation, etc.), you can better pinpoint program gaps. While some benefits may be more attractive to certain employees than others, it’s still incumbent upon you to put together a package that resonates with all your employees.
How Mercer Can Help
The consulting firm understands that the best total rewards strategies are grounded in data and analytics, and that, as we say, great pay and benefits are simply insufficient. For example, a recent Mercer study found that 36% of employees prefer organizations the prioritize social equity and environmental protection.
Mercer can help you attract, retain, and engage their employees by:
- Using analytics to craft a customized total rewards strategy.
- Folding in needed agility via a career framework and job architecture.
- Getting you maximum return on investments by fostering flexibility and inclusion. The result will be increased workforce adaptability and better performance.
Adapting your rewards and incentives to the new workplace doesn’t happen through osmosis or magical thinking. No, it must be intentional. We suggest getting a hand from a consultant such as Mercer, which can help you reinvent your total rewards strategy and improve your employee experience.